Comparative Efficiency Analysis of Banks inside and outside Plutocracy Holding Companies

• Main Authors: Chii-Min Hwang, 黃啟珉
• Other Authors: Ho-Chyuan Chen
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/96289475575213488653

碩士 === 國立高雄第一科技大學 === 金融營運所 === 92 === The purpose of this study is to analyze the comparative efficiency on Banks inside and outside Plutocracy Holding Companies (PHCs). By using the Intermediation approach, we choose deposit, interest expense, salary expense, and fix assets as input variables, while loans, interest income, non-interest income, and the amount of invest as output variables. With DEA and Malmquist analysis, we examine operating performance, productivity change, and efficiency stability of banks, which is grouping into inside PHCs for 12 banks and outside PHCs for 39 banks. For 2001 and 2002, the empirical results of cross-section analysis conclude that the total operating efficiency of banks inside PHCs was better than those outside PHCs, while the technical efficiency of banks inside PHCs was not superior to those outside PHCs. On the other hand, the scale efficiency of banks inside PHCs was not superior to those outside PHCs in 2001, but has been improved obviously in 2002. It shows that the advantage of banks inside PHCs was not distinct, probably because the economy is still under depression. Empirical results of time-series analysis conclude that increasing productivity of banks no matter whether inside or outside PHCs. Increasing productivity can be attributed to increasing technical efficiency and productive technique, of which the latter is the most contributive one. It implies, under fierce competition, banks focus on improving and promoting varieties of derivatives for enhancing productivity and lowering management cost. Moreover, banks inside PHCs have better performance efficiency than those outside PHCs. We also find that, no matter whether inside PHCs for improving scale efficiency, banks with DRC will reduce their scales, while those with IRC will increase their scales.